Answered: Patricia Company earned P 40,000 on…

Patricia Company earned P 40,000 on sales of P 400,000. It earned P 55,000 on sales of P 450,000. total fixed costs are _____________ and why? a. P 210,000 b. P 360,000 c. P 0 d. P 80,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

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Question

Patricia Company earned P 40,000 on sales of P 400,000. It earned P 55,000 on sales of P 450,000. total fixed costs are _____________ and why?

a. P 210,000

b. P 360,000

c. P 0

d. P 80,000

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